Pump.fun tanks 10% amid the memecoin market drain

Solana-based memecoin launchpad Pump.fun has tanked 10% over a volatile 24-hour trading period, erasing earlier gains. The token’s price dropped from an intraday high of $0.007828 and $0.007133, ending the week trading in the red.

Pump.fun value has declined  9.2% extending the downturn to its market cap, which slipped 8.4% to $2.53billion. The drop also affected the whole Pump.fun ecosystem. Their market cap has dropped 6% to $3.85 billion. TROLL is down 10%, Aura is down 12%, Fartcoin, PNUT, and Moo Deng have also experienced small declines.

Pump.fun’s 30-day rally remains intact, but short-term risks persist. 

Pump.fun is still up 142% in the past 30 days. Also, PUMP remains just 11.5% below its all-time high of $0.008819, reached September 14.

Pump.fun’s price is tied to its aggressive token buyback program for its native PUMP. Since launching the initiative in July, the platform has purchased $97.4 million worth of PUMP, which offset 6.67% of the total circulating supply, according to the official buyback tracker. 

Pump.fun allocates 100% up from an earlier 25% of its platform revenue to buy back PUMP tokens. This policy, which started in late July 2025, uses all prior-day revenue for daily repurchases. 

Also, the token processed $942 million in transaction volume on Sunday before topping $1.02 billion on Monday. As reported by Cryptopolitan, this translated to surpassing the perpetual exchange Hyperliquid in revenue for two consecutive days. Behind stablecoin projects Circle and Tether, it ranked third in 24-hour revenue among DeFi protocols. 

According to analysts, PUMP’s drop stems from a mix of profit-taking, overheated technicals, and fragile market sentiment. Although its 30-day rally remains intact, short-term risks persist. Pump.fun needs to hold the $0.007368 Fib level, which is currently almost out of reach.

Top 10 memecoins are all in red

The top 10 memecoins have all declined in the last 24 hours. Dogecoin slid 6.6%, Shiba Inu is down 4%, PEPE is down 5.6%, Meme core is down 11.5%,  PUDGY dipped by 8.2%, BONK notched a decline of 5.7%, and TRUMP has dropped 2.8%. Collectively, the meme market shed 6.37% over the past day, shrinking to $77.09 billion.

This comes after the broader memecoin market cap spike, climbing to $83 billion on Sunday and holding above $80 billion on Monday. 

The rate cut anticipation had a hand. However, although the Fed’s rate cut is a dovish stance that will cause investors to invest more in memecoins, it also introduces potential volatility risks. 

The market’s sensitivity to Federal Reserve policies could lead to fluctuations if future policies are more conservative. Historical trends, like the December 2024 rate cut, resulted in sharp price declines in the crypto market. The crash of SafeMoon and other meme coins in 2024 shows how unstable the sector is, and worries that inflation will rise to 3.1% in 2025 could cause sharp adjustments. 

Additionally, a ‘buy the rumor, sell the news’ effect causes investors to sell off after the rate cut confirmation, potentially leading to price drops.

Still, the Fed’s September 2025 rate cut has ignited a speculative frenzy in the memecoin sector, which has signaled a potential “meme coin hunting season” driven by shifting liquidity and retail investor behavior. 

This shift, coupled with projections of two additional 2025 rate cuts, has created a perfect storm for risk-on assets, with meme coins emerging as both beneficiaries and barometers of speculative capital flows. Therefore, the memecoin industry awaits the rally to be back. 

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